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University of Illinois farmdoc analysts examine the EPA's 2017 Renewable Fuel Standard final rule, which set the conventional ethanol mandate at the statutory maximum and reduced advanced biofuels by less than allowed. They note D4 biodiesel and D6 ethanol RIN prices rallied more than 15 percent after the rule's release.
A larger biofuel mandate increases demand for biodiesel feedstocks and ethanol, supporting soybean oil and corn prices and co-product supply patterns for feed.
farmdocdaily.illinois.eduMark AlthouseDec 1, 2016After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 318 past bullish policy events, CORN moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
